Is manufacturing in Mexico an efficient alternative?

Most companies in the US consider Asia as a cost-effective manufacturing hub. But in the last ten years, things have changed because of Asia’s increased production costs. Also, the long routes for goods delivery to and from China have forced businesses to look for new opportunities. Many companies consider Mexico the next best manufacturing option because of their global strategies for the supply chain. Most US companies are turning to near-shoring and relocating their manufacturing units to Mexico instead of Asia.

Products produced in Mexico

Mexico generally enjoys producing all automotive, machinery, and industrial tools, from professional control to scientific. A major list of products made in Mexico and exported are vehicles, automotive parts, flat TV, refrigerator, aircraft equipment, food applications, medical instruments, process units, and more. Around 80% of this is exported to the US.

Mexico vs. China

Many benefits linked with Mexico promote manufacture Mexico. These benefits include low inventory carrying costs, financial stability, tax incentives, and affordable labor. The labor cost in China has increased in the last few years, making Mexico the next ideal option.

Reasons to consider Manufacturing Mexico

  1. Short supply chain

Companies can reduce transit time by near-shoring. A part manufactured in Mexico can be trucked to the US in less than a day. Small supply chains and small transport hours make production efficient.

  1. Low-cost transportation

Though manufacturing costs may be less in some Asian countries, the shipping freight doesn’t come cheap. The overseas cost of shipping is increasing consistently. And transoceanic shipping only makes sense when you order a full container.

But shipping from Mexico can be done in small quantities, and the transit time can be cut down easily. So, you don’t spend heftily on your transportation.

  1. You’re just a flight away

Another benefit of manufacturing in Mexico is that US and Canadian companies can visit the manufacturing companies and discuss your requirements in person. The time zone is the same, and you don’t have to face visa issues, jet lag, and red-eye flights.

  1. The workforce is highly qualified

Manufacturing in Mexico has helped its highly skilled workforce to grow. Mexico’s automotive and aerospace companies indicate that the overall skill level is good. There are several private and public colleges producing specialized technician grads every year. So, the number of skilled workers is consistently increasing here. 

  1. Competitive labor costs

Though the laborers are highly skilled, their remuneration is quite affordable. Labor costs have not risen here in the last two decades, giving companies a solid manufacturing background.

  1. Supportive environment

Mexico’s economic policies and regulatory environment are very business-friendly; hence, Mexico is the most open country in the world to work with. It has 12 free trade agreements with 44 nations, supportive infrastructure, transportation, and electric service to manufacturing here.

Over hundreds of Fortune 1000 companies are already manufacturing in Mexico, and it is your chance to set up a manufacturing facility and reap all the benefits the country offers. Contact us now to know more.

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